Yusuf Mehdi, senior vice president of Microsoft's Interactive Entertainment Business, just sat down alongside Nancy Tellem, Corporate Vice President at Microsoft LA Studios, to kick off this year's rendition of D:Dive Into Media here in Dana Point, Calif. The first session of the evening is being piloted by AllThingsD's Peter Kafka, and naturally, the topic of conversation is Xbox. For starters, Mehdi affirmed that Microsoft is witnessing an unmistakable transition of the Xbox 360 "from a gaming console to an entertainment console." At present, the install base is up to 76 million (up from around 70 million at the close of September 2012), with US-based users using the console for some 87 hours per month.

In fact, he stated that 18 billion (yeah, with a "B") hours of entertainment have been consumed on Xbox, and while Netflix is obviously the driving force, it might not be that way for much longer. He was quick to claim that Sony's PlayStation 3 "isn't as good of an entertainment console" -- something he feels that "everybody knows" -- and insinuated that the next-generation Xbox will stick to "big and premium." In other words, don't expect Microsoft to kick out a $50 Roku-style content box. Mehdi wants to ensure that the future of Xbox enables voice control, interactivity, and "other stuff that's big and beautiful."

Kicking the conversation over to Tellem, she affirmed that Microsoft is going to invest in premium content -- and in fact, said that she "hopes" for some of it to actually hit end users this year. Not surprisingly, folks are going to be asked to pay for it, but she wasn't willing to talk specifics. Of course, existing Xbox Live users are technically already paying, so it's possible that this new wave of content will be bundled into that monthly cost. When asked if Microsoft was planning to fund its own shows (much like Amazon and Netflix are doing), she seemed open to the idea, but also noted that Microsoft will absolutely partner with existing studios and content creators in order to give them yet another outlet (read: not pay-TV) to get people hooked.

Finally, she noted that there's "more latitude" in what kinds of material they can produce given that console distribution isn't as regulated as traditional broadcast. And, while a good deal of it will aim to satisfy the 18-24 male demographic, we're told that womenfolk and families will be looked after, too. Oh, and as for these Microsoft-funded shows hitting other distribution outlets? According to Tellem, that's unlikely -- at least at first -- but a sizable enough check from the likes of Hulu, Amazon, Sony, etc. could very well change that. In response to a question from TechCrunch's Ryan Lawler, Tellem noted that Microsoft's desire to churn out original, interactive entertainment is a way to both "move consoles, create new relationships with consumers and to expand [Microsoft's] audience," and from a higher level, to create the next generation of TV and "have it be a hit."

He was quick to claim that Sony's PlayStation 3 "isn't as good of an entertainment console"

Man down!

02-14-2013, 10:29 AM

away - #3

Jesszman2197$29,804 |r POWERFUL

He's right though

02-14-2013, 01:54 PM

away - #4

Krazie95$30,435 |r POWERFUL

Well no sh*t, all video game consoles since the beginning of time can be classified as entertainment consoles.. Video games are entertainment.

Microsoft has just figured out a way to make it an all-inclusive entertainment console.

02-14-2013, 02:33 PM

away - #5

DarkSidesHero304$8,932 |r POWERFUL

Microsoft E3......everything but games.

02-14-2013, 03:23 PM

away - #6

OG Killa152$14,682 |r POWERFUL

Long as im entertained and actually having fun....why should I give two fu*ks

02-14-2013, 03:44 PM

online - #7

Ra-da-god$9,237 |r POWERFUL

Originally Posted by ALLEEK

Long as im entertained and actually having fun....why should I give two fu*ks

right!!!

they've been saying sh*t like this since they debuted xbox live on the first xbox....

its no different than "ps3......it only does everything"

its clear that whatever you do they want you doing it on their console as long as they can show me that they are still dedicated to bring me the best gaming experience like they have with Xbox and Xbox 360 I dont give a fu*k what title they give the damn thing.....

if its games I'm good....

02-14-2013, 03:54 PM

online - #8

deziking41$14,770 |r POWERFUL

okay so hold up... If they going to make both ps4 and xbox 1080i next multimedia than wtf am I going to do with ps3 or xbox360?????? I mean why can't they do something different and just make a damn gaming console!

02-14-2013, 04:13 PM

away - #9

DarkSidesHero304$8,932 |r POWERFUL

Originally Posted by deziking

okay so hold up... If they going to make both ps4 and xbox 1080i next multimedia than wtf am I going to do with ps3 or xbox360?????? I mean why can't they do something different and just make a damn gaming console!

No idea what you mean by that...

But I bet

Once the new Xbox comes out expect MS to forget about it.
When the PS4 drops Sony will continue to build the PS3.

02-14-2013, 04:17 PM

online - #10

Ra-da-god$9,237 |r POWERFUL

Originally Posted by DarkSidesHero

No idea what you mean by that...

But I bet

Once the new Xbox comes out expect MS to forget about it.
When the PS4 drops Sony will continue to build the PS3.

maybe, maybe not on both companies

02-14-2013, 04:48 PM

away - #11

DarkSidesHero304$8,932 |r POWERFUL

Originally Posted by Blood Edge

Cell is dead once the ps4 is released. Thank IBM for that. The ps3 will probably be the first current gen console to die.

Source so I have some duece dropping rreading material.

02-14-2013, 07:50 PM

online - #12

LordBlanco|M28$24,736 |r POWERFUL

yet in order to access netflix (a service you pay for already) you need to have Xbox Gold.... nice work greedbox.

Can't even seamlessly attach Flash drives and externals without it asking to reformat or stream movies and shows off file sharing links through the browser.

360 is better for gaming, Worse for entertainment.

Last edited by LordBlanco; 02-14-2013 at 07:53 PM..

02-14-2013, 07:55 PM

away - #13

King Dutch$1,410 |r 6782080

Originally Posted by TanstA!

yet in order to access netflix (a service you pay for already) you need to have Xbox Gold.... nice work greedbox.

Can't even seamlessly attach Flash drives and externals without it asking to reformat or stream movies and shows off file sharing links through the browser.

360 is better for gaming, Worse for entertainment.

oh sh*t. look who its is. Havent seen you since i thought i was a graphic designer.

02-14-2013, 07:57 PM

away - #14

Soraci734$13,856 |r POWERFUL

M$ really has turned into the GOP of console brands

02-14-2013, 08:02 PM

online - #15

LordBlanco|M28$24,736 |r POWERFUL

Originally Posted by King Dutch

oh sh*t. look who its is. Havent seen you since i thought i was a graphic designer.

so do you "know" what you are now?

02-14-2013, 08:06 PM

away - #16

King Dutch$1,410 |r 6782080

Originally Posted by TanstA!

so do you "know" what you are now?

Yea and it wasnt that. lol Me tryna make mixtape covers wasnt it. Im not about that life.

Now I flood this section with my knowledge of games and gaming news since im the Editor-in-Chief of IGN Games.

02-14-2013, 08:08 PM

online - #17

LordBlanco|M28$24,736 |r POWERFUL

Originally Posted by King Dutch

Yea and it wasnt that. lol Me tryna make mixtape covers wasnt it. Im not about that life.

Now I flood this section with my knowledge of games and gaming news since im the Editor-in-Chief of IGN Games.

word? thats dope b.

02-14-2013, 11:35 PM

away - #18

Optimus Crime$5,392 |r POWERFUL

Originally Posted by TanstA!

yet in order to access netflix (a service you pay for already) you need to have Xbox Gold.... nice work greedbox.

Can't even seamlessly attach Flash drives and externals without it asking to reformat or stream movies and shows off file sharing links through the browser.

360 is better for gaming, Worse for entertainment.

Not to mention their Netflix App is terrible lol

02-14-2013, 11:36 PM

away - #19

WILLIAM39$18,722 |r POWERFUL

You must spread some Reputation around before giving it to Krazie again.

02-14-2013, 11:39 PM

away - #20

S7R16$15,230 |r POWERFUL

Originally Posted by TanstA!

yet in order to access netflix (a service you pay for already) you need to have Xbox Gold.... nice work greedbox.

Can't even seamlessly attach Flash drives and externals without it asking to reformat or stream movies and shows off file sharing links through the browser.